In the context of economic growth models, the Solow model emphasises the role of: MCQ with Answer and Explanation

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In the context of economic growth models, the Solow model emphasises the role of:

A. Only capital accumulation without technology

B. Technological progress as the key driver of long-run growth

C. Only savings rate

D. Only population growth

Answer: Option B

Solution (By JKSSB Mock Tests)

The Solow-Swan neoclassical growth model shows that long-run growth in per capita income is driven primarily by exogenous technological progress.

This question belongs to: Economy GK Economy Set 1

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Question #1

The 'Goods and Services Tax' on software services is:

A. 28%

B. 18%

C. 12%

D. 5%

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Correct Answer: Option B

Explanation:
Software services attract 18% GST.

This question belongs to: Economy GK Economy Set 1

Question #2

In the context of fiscal policy, 'Automatic Stabilisers' operate through:

A. Only exchange-rate adjustments

B. Only discretionary changes in spending

C. Only changes in the monetary base

D. Built-in features of the tax and transfer system that dampen fluctuations without discretionary action

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Correct Answer: Option D

Explanation:
Automatic stabilisers are elements of the fiscal system—progressive taxes and unemployment benefits—that automatically reduce the amplitude of business-cycle fluctuations without the need for new legislation.

This question belongs to: Economy GK Economy Set 1

Question #3

Which of the following is a primary function of money?

A. Unit of account

B. Store of value

C. Standard of deferred payments

D. Medium of exchange

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Correct Answer: Option D

Explanation:
The primary function of money is to act as a medium of exchange.

This question belongs to: Economy GK Economy Set 1

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